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GTA Condos

GTA resale condo listings and sales dip to end 2018, but prices rise

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GTA resale condo listings and sales dip to end 2018, but prices rise

GTA Condos

GTA condominium sales declined 9.9 per cent to 5,191 in the fourth quarter of 2018, compared to the last quarter of 2017, according to the latest statistics from the Toronto Real Estate Board (TREB).

New condo listings entered into TREB’s MLS System were down by more than sales on a year-over-year basis – dropping 11.2 per cent to 7,272 in Q4 2018 from 8,186 in Q4 2017.  his points to tighter market conditions at the end of 2018 compared to late 2017.

Price growth leader

“The condominium apartment segment was the best-performing segment in terms of annual average rates of price growth in 2018,” says TREB President Garry Bhaura. “Condos represent a relatively affordable housing option. With a substantial decrease in listings in 2018, competition between intending buyers remained strong.  This supported average price growth well-above the rate of inflation and annual rates of price growth reported for other ground-oriented home types.”

The average price of a condo unit increased by 8.3 per cent to $558,728 in Q4 2018 from $516,086 in Q4 2017. Year-over-year price growth in the city of Toronto, which accounted for 72 per cent of transactions, was slightly higher at 8.9 per cent, resulting in an average price of $598,664.

Lack of supply

“The condominium apartment segment continued to be a key entry point into the GTA home ownership market in 2018,” says Jason Mercer, TREB’s director of market analysis. “Higher mortgage qualification standards meant that many first-time buyers were looking for more affordable housing options.  Moving forward, the concern is that a continued lack of listings supply, despite relatively strong new condo completions as of late, will hamper the ability of potential home buyers to meet their housing needs.”

 

Condo market summary

Fourth quarter 2018
2018 2017
Sales Average Price Sales Average Price
Total TREB 5,191 $558,728 5,760 $516,086
Halton Region 222 $510,946 202 $461,200
Peel Region 654 $424,860 767 $389,446
City of Toronto 3,728 $598,664 4,188 $549,927
York Region 453 $498,198 482 $481,307
Durham Region 117 $383,872 108 $381,893
Other Areas 17 $391,265 13 $343,069
Source: Toronto Real Estate Board

 

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GTA Condos

GTA condos lead resale price growth in 2018

Latest News


GTA condos lead resale price growth in 2018

GTA Condos

Multi-family homes – namely townhomes and condos – led the way in price growth among resale homes in the GTA in 2018, according to the latest statistics from the Toronto Real Estate Board (TREB).

Overall, the average selling price for the year was $787,300, down 4.3 per cent, while sales declined 16.1 per cent from 2017.

Home prices were up slightly in the city of Toronto and down in the surrounding GTA regions. This dichotomy reflects the fact that the condominium segment, which accounted for a large proportion of sales, performed better from a pricing perspective than detached homes. The average price for condominium sales across the TREB market area was up by 7.8 per cent year-over-year.

Higher borrowing costs

“Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options,” says Garry Bhaura, TREB president. “It is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint.”

“After spiking in 2017, new listings receded markedly in 2018,” adds Jason Mercer, TREB’s director of Market Analysis and Service Channels. “In many neighbourhoods, despite fewer sales from a historic perspective, some buyers still struggled to find a home meeting their needs.  The result was a resumption of a moderate year-over-year pace of home price growth in the second half of the year.  Price growth was strongest for less-expensive home types, as many home buyers sought more affordable home ownership options.”

Outlook Report

TREB will be releasing its fourth annual Market Year-in-Review and Outlook Report on Feb 6, featuring the latest results from the Ipsos surveys of existing homeowners and intending homebuyers.  The report will also contain information on the new home market and other analyses.

 

GTA average prices by home type, yr/yr % change

Condominiums
416:
$594,381, 11.4%
905:
$454,135, 5.8%
Total:
$554,497, 9.9%

Townhomes
416
: $714,456, 10%
905: $591,851, 2.9%
Total: $624,042, 5.3%

Semi-detached
416
: $939,859, 4%
905: $661, 186, 3.9%
Total: $755,707, 3.2%

Detached
416
: $1.14 million, -8%
905: $891,095, -2.2%
Total: $945,580, -4.4%

 

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